Two well-known online gaming companies have recently announced an acquisition. Kindred Group, the Swedish online gaming firm once known as Unibet, has acquired 32Red, its smaller and former UK rival.
32Red was acquired by Kindred for £175.6 million and marks the first acquisition agreement in which Kindred has been involved since the Stan James takeover back in 2015.
Takeover speculation caused a surge in 32Red's shares three weeks prior to the acquisition announcement, boosting the iGaming operator's share to 16% to 200p on the London Stock exchange.
"The acquisition of 32Red is consistent with our multi-brand strategy and stated desire to grow our business in regulated and soon to be regulated markets," commented Kindred Group CEO Henrik Tjärnström.
The CEO added that 32Red is a customer-focused and high-quality brand that shares similar values to Kindred. The company is thrilled to welcome 32Red and its team into the Kindred Group and are looking forward to developing the brand further going forward.
32Red CEO Ed Ware also commented on the acquisition and stated that "The management team at Kindred have a similar business philosophy to our own and we look forward to joining forces with Kindred and continuing our successful growth within the Kindred Group.
Kindred Group has received confirmation from 32Red shareholders who share the bulk stake (a combined 71.1%) in 32Red that they will agree to the offer. That said, the offer remains conditional until Kindred gains approval of over 75% of shares.